Musings From Abroad

US ‘conflict minerals by disclosure rule’ has not lessened Congo bloodshed, monitor claims

Published

2 months ago

October 8, 2024

In a study released on Monday, a United States congressional watchdog stated that it had not discovered any proof that the conflict minerals disclosure rule implemented by the Securities and Exchange Commission (SEC) in 2012 had lessened bloodshed in the Democratic Republic of the Congo.

According to a U.S. Government Accountability Office study, armed factions are still engaged in conflict over control of gold mines located in the country’s east.

It said that the regulation, which mandates that certain businesses disclose how they utilise gold, tungsten, tantalum, and tin, has probably had little impact on the bordering nations.

“GAO found no empirical evidence that the rule has decreased the occurrence or level of violence in the eastern DRC, where many mines and armed groups are located,” the report said.

“GAO also found the rule was associated with a spread of violence, particularly around informal, small-scale gold mining sites,” it said, adding that gold is the most difficult to trace, and easiest to smuggle, of the four minerals covered by the rule.

The top producer of tantalum in the world is Congo; both the US and the EU view it as a vital material.

The report further stated that “the SEC disagreed with some of GAO’s findings and raised concerns about some of its methodology and analyses.” According to the GAO, some of its modifications had no appreciable impact on its conclusions.

“As the agency noted in comments shared with GAO, SEC staff has serious concerns about the report, including that it makes assertions and reaches conclusions that rest on several erroneous factual assumptions, draws causal inferences that are not supported by GAO’s statistical analyses, and deviates significantly from the GAO’s previously issued reports,” the SEC said.

“GAO had not shared its final report with the SEC until today, so staff is reviewing it to determine if and how GAO addressed the SEC’s concerns,” it added.

Last year, GAO said that some U.S. companies buying minerals from Congo and its neighbours were failing to meet disclosure requirements.

The UN Security Council was informed on September 30 by Bintou Keita, the head of the U.N. mission in Congo, that M23 rebels in the east are making $300,000 a month in a zone they have taken over for coltan mining.

Related Topics:Congo Featured United States

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Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

17 hours ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.

Musings From Abroad

Blinken to reveal UN Sudan funding additions

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

Additional financing for humanitarian aid to Sudan and initiatives to strengthen civil society in the nation, where a conflict has killed tens of thousands of people and displaced millions, will be announced by U.S. Secretary of State Antony Blinken at the United Nations on Thursday.

Blinken will make many announcements when he leads a UN Security Council meeting on Sudan on Thursday, which will centre on humanitarian aid and civilian protection, Deputy U.S. Representative to the UN Ned Price told reporters on Wednesday.

According to Price, the announcements would include more money for humanitarian help, initiatives to strengthen civil society, and the return of democracy.

“Sudan, unfortunately, has risked becoming a forgotten conflict,” Price said.

“So part of the reason the secretary … opted to convene a signature event on this very topic is to make sure it remains in the spotlight,” Price said.

For almost 18 months, the paramilitary Rapid Support Forces and Sudan’s army have been engaged in combat, resulting in a severe humanitarian crisis that has forced over 12 million people from their homes and made it difficult for U.N. organisations to provide aid.

A power struggle between the RSF and the Sudanese Armed Forces preceded a planned shift to civilian administration, which sparked the conflict in April 2023.

Although the army declined to join this year’s U.S.-mediated peace negotiations in Geneva, the warring parties did pledge to increase assistance access, which prevented any movement towards a ceasefire.

Price stated that before President Joe Biden’s term ends next month, the United States would keep collaborating with allies to enhance humanitarian access in Sudan and eventually end hostilities.

“We are going to leave nothing on the field in our efforts to work with allies, with partners, with the Sudanese stakeholders themselves, on the issues that matter most – humanitarian access, the provision of humanitarian assistance, ultimately, the process by which we can work to get to a cessation of hostilities, which is most urgently needed,” he said.